SEC Wasted a Decade Rejecting Bitcoin ETFs

Spot Bitcoin ETFs are set to commence trading on Thursday, with a crypto-friendly SEC Commissioner expressing that the awaited day has been long overdue.

Sec Wasted A Decade Rejecting Bitcoin Etfs_65d5cfdeed800.webp

The approval of spot Bitcoin exchange-traded funds (ETFs) by the United States Securities and Exchange Commission (SEC) on Wednesday was as anticipated. However, SEC Commissioner Hester Pierce, affectionately known as “Crypto Mom” among enthusiasts for her longstanding support of cryptocurrencies, did not mince words in expressing the toll the prolonged waiting period took on the agency, investors, and the cryptocurrency industry.

In her statement following SEC Chair Gary Gensler’s more reluctant acknowledgment of the long-awaited Bitcoin ETF approval, Pierce characterized the event as the conclusion of an unnecessary yet significant saga. Emphasizing that the initial application for a spot Bitcoin ETF had been filed over a decade ago in the United States, she highlighted the recurring question regarding the necessity of a spot Bitcoin exchange-traded product (ETP) throughout her six years with the agency.

Commissioner Hester Peirce’s Perspective on Spot Bitcoin ETF

Pierce questioned the perplexing logic behind the series of denials, stating that predicting approval timelines for spot Bitcoin ETPs was challenging due to the review process differing significantly from that of comparable ETPs. She underscored the ever-shifting goalposts as the Commission consistently rejected applications with a ‘DENIED’ label. Notably, Pierce pointed out that the SEC’s lack of prior action had compelled retail investors to resort to less efficient methods for gaining Bitcoin exposure in the securities markets.

Furthermore, she criticized the SEC’s reluctance to admit error, noting that instead of a forthright acknowledgment, the agency provided a weak explanation for its change of heart.

“We wasted a decade of opportunities to fulfill our responsibilities,” Pierce lamented. “Had we applied the standards used for other commodity-based Exchange-Traded Products (ETPs), we could have greenlit these products years ago. However, we held back until a court exposed our reluctance.”

The SEC’s eventual approval of spot Bitcoin ETFs followed a ruling in August by a U.S. Court of Appeals for the D.C. Circuit justice, who mandated that the agency reevaluate an application from crypto firm Grayscale seeking to transform its Bitcoin Trust into a genuine ETF. The justice criticized the SEC for lacking a “coherent explanation” for denying spot Bitcoin ETFs, suggesting that such denials appeared to be “unlawful.”

Commissioner Hester Peirce's Perspective on Spot Bitcoin ETF

In his statement, Gensler referred to the court’s decision, acknowledging that while the recent Bitcoin ETF applications resembled previous ones, the “circumstances, however, have changed.” He went on to state that, considering these circumstances and the detailed discussions in the approval order, he believed the most sustainable course of action was to approve the listing and trading of these spot Bitcoin ETP shares.

Related: The US SEC Officially Approves Spot Bitcoin ETF

Despite the approval on Wednesday, Pierce asserted that the “order does not undo the many harms created by the disparate treatment of spot Bitcoin products.” She then delved into a list of specific issues she attributes to the SEC’s steadfastly anti-crypto stance over the past decade.

5.0/5

(100 votes)

Latest

Azcnews Breaking Zklend Loses $4.9m In Starknet Exploit

News | Editor Choice | Policy & Regulations

zkLend Loses $4.9M in Starknet Exploit, Offers Hacker 10% Bounty for Return of Funds

Decentralized lending protocol zkLend has fallen victim to a $4.9 million exploit on the Starknet network, marking a resurgence in crypto-related hacks after a decline in January.

Azcnews Breaking Bitcoin’s Price Fluctuation And The Role Of Otc Transactio

News | Bitcoin | Editor Choice

Bitcoin’s Price Fluctuation and the Role of OTC Transactions

Bitcoin briefly dropped to $94,900 last night before recovering slightly. While market sentiment and institutional strategies often dominate discussions on Bitcoin’s volatility, the impact of over-the-counter (OTC) transactions remains an overlooked but crucial factor.

Azcnews Breaking Litecoin Etf Has A 90% Chance Of Sec Approval

News | Altcoin | Editor Choice | Policy & Regulations

Litecoin ETF Has a 90% Chance of SEC Approval

Bloomberg ETF analysts suggest that Litecoin's regulatory filings have been acknowledged, indicating that the SEC likely classifies it as a commodity.

Azcnews Breaking Bitcoin Rebounds As Holding Demand Remains Strong

News | Bitcoin | Editor Choice

Bitcoin Rebounds as Holding Demand Remains Strong

Bitcoin has fallen over 10% from its record high of $109,000 on January 20, which aligned with Donald Trump’s inauguration after a 60% surge since his November election win.

Azcnews Breaking Crypto Markets Recover After U.s. Tariff Induced Dip

News | Altcoin | Bitcoin | Editor Choice

Crypto Markets Recover After U.S. Tariff-Induced Dip

The cryptocurrency market has been steadily recovering after experiencing a brief downturn following the latest round of tariff announcements from U.S. President Donald Trump.